Further Reading

At present, the Advertising Standards Authority permits broadband adverts to make headline speed claims so long as they are achievable by just 10 percent of customers, and are preceded by the words "up to."

These headline speeds are a key factor for "a significant proportion of consumers" when making decisions about which provider to sign up to, the research found—but general levels of knowledge are low among the British public, and it turns out that a lot of customers do not know that they're unlikely to enjoy these top speeds as advertised.

The situation "needs to change," the ASA's chief executive Guy Parker said on Thursday. He added that the regulator planned to step up action against telcos who flout the rules.

"Making sure ads don’t mislead is at the heart of what we do," he said. "We’ve taken action this year to tackle confusing broadband pricing, to the benefit of consumers. Our new research indicates that speed claims in ads contribute to consumers’ expectations of the broadband speeds they’ll receive, but their expectations are not being met. That needs to change."

The study, conducted by market research outfit GfK, found that while levels of consumer knowledge do vary, understanding of broadband speeds is "low overall," and that many people don't even know what Internet connection speeds they need to carry out daily online tasks. The report said:

Most understand that the higher the number in the ad, the higher the speed of the service, but many are unclear on what this means for them and what speed they would likely achieve.

Crucially, the research shows that despite that uncertainty most consumers believe they are likely to receive a speed at or close to the headline speed claim when, for many, that is not likely to be the case.

The Internet Service Providers' Association—a lobby group that represents UK telcos—acknowledged that "the broadband market has changed dramatically in recent years," and said that it "fully supports the ASA’s move to bring the guidance on broadband advertising up to date."

However, according to ISPA chair James Blessing, speed is not the only factor in consumer decision-making, and the ASA needs to come up with an "effective alternative" for speed claims. He said:

Any new guidance needs to reflect that whilst speed is an important factor, it is not the only reason a customer decides on a deal.

Crucially, the ASA's research has not identified an effective alternative for the current approach to 'up to' speed claims and ISPA, alongside the wider Internet industry, looks forward to supporting the ASA in developing a revised and evidence-based guidance on this and getting a workable new understanding of how speeds should be advertised.

Further Reading

The Committee of Advertising Practice (CAP), the body which sets British ad rules, said it would be rejigging its guidance ahead of a response in the spring.

"CAP will take these findings and other information into account in its review of the guidance to ensure that broadband providers aren’t over-promising on their speed claims," added CAP director Shahriar Coupal.

The ASA is yet to determine how the current rules will be replaced, but has said changes will be brought in next year.